Page 4714 - Week 15 - Wednesday, 7 December 1994
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have approved of Martin's actions and handling of the banking inquiry, because he was soon made Speaker of the House of Representatives. Tony Rigg was another who made a detailed submission to the banking inquiry, with 1,700 pages of supporting documents. I could not complete this story without commending the Rigg family for their courage and persistence in their campaign.
There is no doubt that, because of the unwarranted high interest rates being charged by banks and the economic conditions, farmers have been hit hard. The drought has made it disastrous for many. Because most tariffs in Australia have been reduced or removed, many businesses have been affected seriously by cheap imports. Something needs to be done about this situation in Australia. There needs to be a look at the broad picture. The banks must be made to represent their products correctly and to deal fairly with bank clients.
Madam Speaker, I call on the following authorities to act in this matter: The Reserve Bank should require that the Commonwealth Bank obey the provisions of the Reserve Bank Act. I believe that the Fraud Squad should investigate the earlier mentioned actions by certain officers of the Commonwealth Bank. The ACT Government should investigate the operations of the Commonwealth Bank and the other banks in Canberra, particularly in relation to the points that I mentioned about the State Bank of New South Wales. The Federal Government should have this case fully investigated and, along with it, dozens of other similar cases. If we are not going to move to save the small business sector in Australia, who is going to drive the nation? Madam Speaker, I believe that this is one of the most serious matters facing Australia. We need to make sure that all members of parliament are aware of the problems and assist the people in our communities to do something about unethical activities by the banks. I seek leave to table the documents that support the statements that I made.
Leave granted.
MS FOLLETT (Chief Minister and Treasurer) (4.14): Mr Stevenson has raised issues to do with banking on many occasions, and on this occasion he has raised some specific instances of difficulties with banks. My response must necessarily be in broad terms, not having had the detail that he raised.
Madam Speaker, the Commonwealth, as members would know, has the major role in regulating banking practices. The banking sector is regulated by the Reserve Bank, the RBA, under the Banking Act 1959, with an overall objective of depositor protection. The RBA sets prudential standards, for example, levels of capital and liquidity, and monitors compliance with those standards. The RBA also sets the official cash rate and the interest rate for financing transactions between the banks and the RBA.
The Commonwealth, supported by Territory and State governments, has taken a very close interest in the conduct of the financial sector and a task force, comprising the Trade Practices Commission, the Federal Bureau of Consumer Affairs and the Federal Treasury, is developing an industry code of practice. However, the Australian Bankers Association has introduced its own code of practice. The ACT Attorney-General
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